Swiss stock exchange operator SIX suffers billion-franc loss in 2023

SIX recorded a loss of CHF1.0 billion ($1.1 billion) in 2023. KEYSTONE/© KEYSTONE / ENNIO LEANZA

The Swiss stock exchange operator SIX suffered a billion-franc loss last year. The loss, which had been previously reported on Wednesday, was due to two major depreciations – at the Spanish stock exchange and the Worldline investor relations company.

SIX recorded a loss of CHF1 billion ($1.1 billion) in 2023. Back in mid-December, SIX announced a loss in the region of CHF1 to CHF1.1 billion. In 2022, however, it generated a net profit of CHF185 million. And in the first half of 2023 alone, SIX earned CHF105 million. Operating profit EBIT slipped to CHF-975 million, with operating income rising by 2.1% to CHF1.5 billion.

Reasons for depreciation

One of the reasons for the slump is the payment transaction provider Worldline, in which SIX holds a 10.5% stake. In view of the collapse in the French company’s share price (-57%), SIX was compelled to perform a negative value adjustment of CHF862 million.

Additionally, the Spanish stock exchange had to adjust the so-called “goodwill” downwards by CHF340 million. “Goodwill” arises when a company is acquired at a purchase price above its book value. This is due to higher discount rates and lower trading volumes in Spain and the rest of Europe.

According to SIX, without the value adjustments the Group result would have been CHF181 million, slightly lower than in 2022. Taking adjustments for exchange rate effects into account, SIX would have improved its result from the previous year by 1.3%, it was stated.

Synergies and cost-saving measures

The Board of Directors intends to propose a higher ordinary dividend of CHF5.20 per share for 2023 at the Annual General Meeting. Last year, shareholders – consisting of around 120 financial institutions – received CHF5.10 per share.

In the current 2024 financial year, SIX expects the political and macroeconomic conditions for the economy and society to be as challenging as in 2023. In the medium term, however, it aims to achieve revenue growth of more than 3% per year.

Profitability is also to be continuously increased. The focus here is on cost synergies and targeted cost-cutting measures.

Adapted from German by DeepL/mg/amva

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